Sanhua 2026 Interim: Revenue Up Slightly, Net Profit Down; Europe Sales Rise 15%
Sanhua Intelligent Controls reported a slight revenue increase but a decline in net profit for the first half of 2026. Refrigeration revenue edged up 0.5% amid subsidy cuts and overseas market weakness, while auto components revenue grew 9.9%, with European orders driving a 15% rise in that segment. Gross margin held at 28.3% in the second quarter despite currency and commodity pressures.
Sanhua Intelligent Controls released its 2026 interim results, showing a modest rise in revenue but a decline in net profit for the reporting period. The company's operations span refrigeration and automotive components. In the refrigeration segment, revenue edged up 0.5% year on year, weighed by reduced subsidies and a cyclical downturn in overseas markets. The automotive components segment recorded a 9.9% increase in revenue, supported by a surge in orders from European customers, which drove a 15% growth in that segment against the broader trend.
On profitability, the company faced pressure from a stronger renminbi and higher commodity prices, yet its gross margin held at 28.3% in the second quarter. Sanhua maintained earnings stability through cost pass-through mechanisms. The interim data also showed that growth in the automotive thermal management business underpinned overall performance, while the home appliance business faced short-term headwinds without altering the company's overall operating condition.
The company's H-share valuation currently differs from its A-share listing, with the H-shares trading at a relatively lower level. Regarding further business developments, the actual ramp-up of the robotics business and customer validation progress for the data center liquid cooling business remain to be disclosed in subsequent financial reports.